Landlord Tax Return

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Landlord Tax Return; Landlords are subject to various taxes related to their rental income and property ownership. The key taxes that landlords need to be aware of include:

  1. Landlord Tax Return (income tax): Rental income earned by landlords is subject to income tax. Landlords must declare their rental income on their annual self-assessment tax return. The amount of tax payable depends on the landlord’s overall income and tax rate.
  2. Stamp Duty Land Tax (SDLT): SDLT is payable by the buyer of a property when its value exceeds a certain threshold. This tax is payable on both residential and commercial properties, including buy-to-let properties. The rates vary depending on the purchase price and whether the property is a second home or buy-to-let investment.
  3. Capital Gains Tax (CGT): When a landlord sells a property that has increased in value since its purchase, they may be liable to pay CGT on the capital gain. However, there are certain reliefs and exemptions available, such as Principal Private Residence Relief (PPR) and Letting Relief, which can reduce the CGT liability.
  4. Council Tax: Landlords are usually responsible for paying council tax on properties they own unless the property is let to tenants on a short-term basis (e.g., holiday lets), in which case the responsibility may fall to the tenants.
  5. Wear and Tear Allowance: Until April 2016, landlords could claim a Wear and Tear Allowance, which allowed them to deduct a flat rate of 10% from their rental income to account for wear and tear on furnished properties. However, this has been replaced by the Replacement of Domestic Items Relief, which allows landlords to claim tax relief for the cost of replacing items in rental properties.
  6. Mortgage Interest Relief: Until April 2020, landlords could deduct mortgage interest payments from their rental income before calculating their tax liability. However, this relief has been phased out and replaced with a basic rate tax reduction on mortgage interest payments.
  7. Additional Taxation for Higher Rate Taxpayers: Higher rate (40%) and additional rate (45%) taxpayers may be subject to additional taxes on their rental income and capital gains.

It’s essential for landlords to keep detailed records of their income and expenses related to their rental properties to ensure accurate tax reporting. Additionally, seeking advice from a tax professional or accountant can help landlords understand their tax obligations and take advantage of any available reliefs or allowances.  For more information regarding Landlord tax, HMRC’s website has a guide https://www.gov.uk/renting-out-a-property/paying-tax

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Your personal details

We need a few details about you, please make sure these match with the details HMRC expect, for example if you recently got married, please let us have your maiden surname unless you have already made HMRC aware of the change.

Tax References

If you are not resident in the U.K. you may not have a NI / National Insurance number, in which case leave this field empty. Your UTR is received from HMRC once you inform them you have income from sources other than regular emplopyment. If you do not have your UTR, please leave it empty for the moment, we will assist you to receive your requiured reference.

Employment information

Have you been employed in this tax year? If you are employed, you will probably have paid tax on each wage slip, we need to take this into account, you may be due a rebate!

Self-employment information

Please tell us about your income and expenses for self-employment

Additional income

Here are some additional sources of taxable income you may need to tell us about

  • Your info.
  • Tax Ref.
  • PAYE
  • Income
  • Other
Your Details
Tax References
If you are not a resident of the United Kingdom, you may not have a valid U.K. national insurance number, in which case please leave it blank.
Your UTR should be included on any letters you receive from HMRC, sometimes called a Tax Reference. It is a 10 digit numeric reference given to you when you are first registered for self assessment taxation. If you do not have it to hand, please leave this question blank.
Employment Income
Employment P60's (you can select multiple files if needed)

Max. size: 192.0 MB

If you do not have your employment P60(s) to upload, you can upload wage slips, or complete the details below.
Self employed income
Self employed expenses - We do not require receipts for your purchases/expenses, however you should always keep them on hand for at least 6 years. Some of these expense questions may not apply to your business, please leave them blank, however if there is something you need to include that just does not fit elesewhere, please include in the final entry
Additional sources of income and expenditure
If you have forms of income which you feel you may need to declare to HMRC, please do let us have the details below. If you are not required to pay tax on the income, we will not include it on your tax return submission.
Miscellaneous Information
Rebates are always affected by your earnings, expenses and other personal circumstances. When you send us information, it's important it is correct, we can make changes to your tax calculation however we may charge an additional admin fee. We are happy to complete capital gain calculations for you, however they are not included in the standard self-assessment return service. We include two sections of the self-assessment return within the standard price, additional sections where required attract an additional fee of £25 + VAT per section. Our self-assessment charges become payable when we create your tax return calculation, submission to HMRC is included without additional charge. We are of course unable to guarantee a tax refund if your expenses and earnings declared do not allow for a rebate.